Analog Devices to buy Alif Semiconductor for $1.35B

Analog Devices is buying Alif Semiconductor in an all-cash deal worth $1.35 billion upfront.

The companies said on 9 September 2026 they had entered a definitive agreement. The joint press release puts that cash number on the table. Both boards approved it. Close is expected before the end of calendar year 2026, subject to customary conditions and the Hart-Scott-Rodino waiting period.

The number most headlines skip is the extra check. ADI may also pay incremental contingent consideration of up to $200 million. The release does not spell out the triggers, and it does not disclose Alif revenue or a purchase multiple.

Alif, based in Pleasanton, California, makes EdgeAI microcontrollers and fusion processors with integrated neural processing units. The release says its silicon is already shipping in production to consumer and industrial customers, so the deal is buying chips that already exist, not a paper design house.

ADI frames the buy as Physical Intelligence, systems that sense, reason, and act locally under power, latency, and security constraints. CEO and Chair Vincent Roche said the work sits at the electro-physical interface. Alif co-founder and president Reza Kazerounian said the chips were designed around dedicated low-power neural processing. ADI's company blurb puts FY25 revenue at more than $11 billion.

PJT Partners and Wachtell, Lipton, Rosen & Katz advised ADI. Qatalyst Partners and DLA Piper advised Alif.

The same week's bigger AI-platform tape includes Nvidia's $12.9 billion Hugging Face agreement. ADI's check is smaller. The $200 million earnout is the line that still has no terms.

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